New Report Ranks Most and Least Expensive States for Drivers

Aug. 21, 2013—Georgia is the most expensive state to operate a motor vehicle and Oregon is the cheapest, according to a new report from financial research organization Bankrate.com.

Factoring in the costs of gasoline, insurance, repairs, taxes and fees, the typical driver in Georgia spends $4,233 annually to operate his or her vehicle. That figure is nearly double the annual cost of operating a vehicle in Oregon, which is $2,204. The national average is $3,201, according to Bankrate.com.

According to the report, Georgia’s lack of public transportation and sprawling communities in the Atlanta market are causing long commutes and above-average gasoline costs and insurance rates. Georgia also has the highest state automobile taxes and fees in the nation.

Oregon does not have a state sales tax and benefits from relatively low car insurance rates. Plus, the typical Oregon resident drives 16 percent fewer miles than the national average.

The five most expensive U.S. states to operate a vehicle include Georgia, California ($3,966), Wyoming ($3,938), Rhode Island ($3,913), and Nevada ($3,886). The five cheapest states include Oregon, Alaska ($2,227), South Dakota ($2,343), Montana ($2,660) and Indiana ($2,698).